There’s nothing “safe” about this name at all. Shares are currently trawling the session low and are down a whopping 41% from yesterday’s close.
It has not been a good year for the stock, now down more than 71% so far in 2021. Even before today’s disastrous fall, shares were still down more than 51% this year.
The stock is hitting a record low on the day after reporting disappointing quarterly results, with weaker-than-expected revenue.
Worse, Paysafe slashed its full-year forecast, while third-quarter earnings and revenue fell year over year.
It’s a disastrous reaction to a disastrous report. The charts don’t look good either.
Trading Paysafe Stock Amid Plunge
Where did this stock fall apart? Surprisingly, it wasn’t on Thursday.
It was on Aug. 16, the last time it reported earnings. On that day, Paysafe stock plunged to new all-time lows, as it cratered through $9.60.
Interestingly, the ensuing rebound a few weeks later found resistance at the post-earnings high from the 16th. That was another sign that bulls shouldn't be long this stock.
Since then, Paysafe stock has remained locked in a painful downtrend. While that didn’t guarantee the stock’s decline today, it should have kept bulls from being long the stock into today’s calamity.
So what do bulls do from here?
Honestly, there’s not much to love. Paysafe stock certainly won’t find its way on my go-to list anytime soon.
That said, there are ways to navigate this name for traders who are compelled by it.
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On the upside, look for a move back over $5.02 — today’s high. Should we get it, the stock would begin filling into today’s gap. Specifically, it could put the channel midpoint in play, followed by the 10-day moving average.
In this scenario, bulls could use the current low as their stop-loss. Keep in mind, it will be wide.
On the downside, the $3.40 to $3.60 area could act as support. Near this zone, Paysafe stock finds a downward extension, as well as channel support.
Keep in mind that this is very much a speculative holding, no matter which outcome sets up.